"We are working hard to improve the monetisation system for mobile and to educate our customers to take full advantage of mobile," Mr Li told analysts on a conference call after the earnings announcement.

"But we expect it would take some time to close the gap," he added.

Baidu also faces increased competition. In August this year Qihoo 360 Technology, an anti-virus software company, launched a competing search engine.

Baidu shares are not trading because of a hurricane on the US East Coast which has led to the temporary closure of the New York Stock Exchange.